Suppose there are two firms in a market where the (inverse) market demand of a product is given by: P(Q)=60Q Q=q1+q2 The costs of each firm are: c(qi)=10qi+25 Firm 1 is the quantity leader and firm 2 is the quantity follower (sequential quantity setting). The firms are selling identical products. a. What are the profits of each firm in a regular Stackelberg (one firm is the quantity leader) setting? Show all of your work. b. Suppose that firm 1 decides that it is going to produce 44 units. Will this increase its profits relative to part ' a ' above? Show your work. c. Is there another quantity that firm 1 should produce in order to increase its profits? Assume that firm 2 will leave the market if its profits are less than or equal to 0 . (Hint: set the profits of firm 2 equal to 0 and find the q1 that would lead the profits of firm 2 to equal 0). Suppose there are two firms in a market where the (inverse) market demand of a product is given by: P(Q)=60Q Q=q1+q2 The costs of each firm are: c(qi)=10qi+25 Firm 1 is the quantity leader and firm 2 is the quantity follower (sequential quantity setting). The firms are selling identical products. a. What are the profits of each firm in a regular Stackelberg (one firm is the quantity leader) setting? Show all of your work. b. Suppose that firm 1 decides that it is going to produce 44 units. Will this increase its profits relative to part ' a ' above? Show your work. c. Is there another quantity that firm 1 should produce in order to increase its profits? Assume that firm 2 will leave the market if its profits are less than or equal to 0 . (Hint: set the profits of firm 2 equal to 0 and find the q1 that would lead the profits of firm 2 to equal 0)